Section 7 in The Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004
7. [Investment by Indian party engaged in financial services sector].
- [(1) Subject to the regulations in Part I, an Indian party engaged in financial services sector in India may make investment in an entity outside India] [Substituted by G.S.R. 441(E), dated 25.5.2009 (w.r.e.f. 6.9.2006). ]:Provided that the Indian party--(i)has earned net profit during the preceding three financial years from the financial services activities;(ii)is registered with the regulatory authority in India for conducting the financial services activities;(iii)has obtained approval from the concerned regulatory authorities both in India and abroad, for venturing into such financial sector activity;(iv)has fulfilled the prudential norms relating to capital adequacy as prescribed by the concerned regulatory authority in India.(2)Any additional investment by an existing JV/WOS or its step down company in the Financial Services Sector shall be made only after complying with the conditions stipulated in sub-clause (1).
